CMKX Group Think
Janis, I. L. & Mann, L. (1977). Decision making: A psychological analysis of conflict, choice, and commitment. New York: Free Press.
Eight Main Symptoms of Group Think...
Illusion of Invulnerability: Members ignore obvious danger, take extreme risk, and are overly optimistic.
Collective Rationalization: Members discredit and explain away warning contrary to group thinking.
Illusion of Morality: Members believe their decisions are morally correct, ignoring the ethical consequences of their decisions.
Excessive Stereotyping:The group constructs negative sterotypes of rivals outside the group.
Pressure for Conformity: Members pressure any in the group who express arguments against the group's stereotypes, illusions, or commitments, viewing such opposition as disloyalty.
Self-Censorship: Members withhold their dissenting views and counter-arguments.
Illusion of Unanimity: Members perceive falsely that everyone agrees with the group's decision; silence is seen as consent.
Mindguards: Some members appoint themselves to the role of protecting the group from adverse information that might threaten group complacency.
Saturday, November 29, 2008
Wednesday, November 26, 2008
CMKX - CMKM Diamonds Incorporated ****HAPPY ANNIVERSARY CMKX****
It has now been 6 YEARS since CyberMark(CMKI) became Casavant Mining Kimberlite International Inc. (OTCBB:CMKI)
*****************************************************
SCHEDULE 14C
Information Statement Pursuant to Section 14(c) of the
Securities Exchange Act of 1934
November 25, 2002 (which is the effective merger date with the Casavant Mineral Claims (as defined) in Saskatchewan, Canada), the Company reported on its most recent Form 10-QSB (which was dated September 30, 2002) total assets of $344 in cash; total liabilities of ($1,672) for accounts payable; total stockholders' equity ($1,338); and total liabilities and stockholders' equity of $344.
This was based on the Company's then current share capitalization which consisted of 500,000,000 shares of common voting stock at $.0001 par value with 352,223,510 shares issued and outstanding.
*****************************************************
Outstanding Voting Stock of the Company
In order to effectuate the merger with the Casavant Mineral Claims, the majority shareholders' holding more than 51% of the voting shares approved an increase in the authorized capital of the Company from 500,000,000 to 10,000,000,000 with the cancellation of all Preferred shares.
As of the Record Date, there were 7,241,653,404 shares of Common Stock issued and outstanding. The Common Stock constitutes the outstanding class of voting securities of the Company. Each share of Common Stock entitles the holder to one (1) vote on all matters submitted to the shareholders.
*****************************************************
First PR - 11/26/2002
Casavant Mining Kimberlite International Inc. Announces
Election of Wesley Casavant as Secretary-Treasurer with Field
Responsibilities
*****************************************************
*****************************************************
SCHEDULE 14C
Information Statement Pursuant to Section 14(c) of the
Securities Exchange Act of 1934
November 25, 2002 (which is the effective merger date with the Casavant Mineral Claims (as defined) in Saskatchewan, Canada), the Company reported on its most recent Form 10-QSB (which was dated September 30, 2002) total assets of $344 in cash; total liabilities of ($1,672) for accounts payable; total stockholders' equity ($1,338); and total liabilities and stockholders' equity of $344.
This was based on the Company's then current share capitalization which consisted of 500,000,000 shares of common voting stock at $.0001 par value with 352,223,510 shares issued and outstanding.
*****************************************************
Outstanding Voting Stock of the Company
In order to effectuate the merger with the Casavant Mineral Claims, the majority shareholders' holding more than 51% of the voting shares approved an increase in the authorized capital of the Company from 500,000,000 to 10,000,000,000 with the cancellation of all Preferred shares.
As of the Record Date, there were 7,241,653,404 shares of Common Stock issued and outstanding. The Common Stock constitutes the outstanding class of voting securities of the Company. Each share of Common Stock entitles the holder to one (1) vote on all matters submitted to the shareholders.
*****************************************************
First PR - 11/26/2002
Casavant Mining Kimberlite International Inc. Announces
Election of Wesley Casavant as Secretary-Treasurer with Field
Responsibilities
*****************************************************
Monday, November 24, 2008
CMKX --- CMKM Diamonds Inc --- ***Citigroup Rescue***
Bloomberg.com
Citigroup Gets U.S. Rescue From Losses, Cash Infusion (Update2)
By Bradley Keoun
Nov. 24 (Bloomberg) -- Citigroup Inc. received a U.S. government rescue package that shields the bank from losses on toxic assets and injects $20 billion of capital, bolstering the stock after its 60 percent plunge last week.
The second-biggest U.S. bank by assets surged as much as 72 percent in New York trading after the Treasury, Federal Reserve and Federal Deposit Insurance Corp. announced the aid plan yesterday. In return for the cash and guarantees, the government gets $27 billion of preferred shares paying an 8 percent dividend and warrants equivalent to a 4.5 percent stake in the company.
The regulators stepped in to protect Citigroup from losses on $306 billion of troubled U.S. home loans, commercial mortgages, subprime bonds and low-grade corporate loans when the firm’s tumbling shares sparked concern that depositors might pull their money, destabilizing a company that operates in more than 100 countries. The $20 billion of new cash adds to a $25 billion infusion the bank, led by Chief Executive Officer Vikram Pandit, collected last month under a Congressional bailout program.
“It really was a must-do thing,” said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $85 billion. “If they’d let Citigroup go, that would’ve been disastrous.”
Citigroup’s stock dropped below $5 last week for the first time since 1994, vexing government officials who in the past three months have pumped $250 billion into U.S. banks, expanded the Fed’s last-resort lending programs by more than $1 trillion and bailed out insurer American International Group Inc. and mortgage finance companies Fannie Mae and Freddie Mac.
Dividend Cut
The shares, which closed last week at a 15-year-low of $3.77, today surged 52 percent to $5.73 as of 2:45 p.m. in New York Stock Exchange composite trading. The stock remains 89 percent off the record $55.70 reached in December 2006.
The cost of the new preferred shares will reduce earnings left over for common shareholders, Morgan Stanley analysts Betsy Graseck and Cheryl Pate wrote today in a report. Under the terms of the deal with the government, Citigroup also has to slash its quarterly shareholder dividend to 1 cent from 16 cents.
Over the longer term, Citigroup’s stock price will appreciate because of “the reduction in ‘tail risk,’” or the chance that losses might be become so heavy the bank can’t sustain them, they said.
“For the foreseeable future, Citi has oxygen,” Royal Bank of Scotland Group Plc analyst Tom Jenkins wrote today in a report.
Losing Streak
Pandit, who has been unable to snap a four-quarter streak of net losses totaling $20 billion since he took the lead at the company in December 2007, said the agreement addresses “market confidence and the recent decline in Citi’s stock.”
“What we really needed to do was completely put behind us the issue of whether Citi would be able to cover the losses that it has out of the capital base that it has,” Chief Financial Officer Gary Crittenden said in an interview. “Under virtually any circumstance that is reasonable, Citi has the ability now.”
The asset guarantees and capital infusion will boost Citigroup’s Tier 1 ratio -- a gauge of the bank’s ability to withstand loan losses -- to 14.8 percent, from 8.19 percent at the end of September. A bank needs a 6 percent Tier 1 ratio to meet the regulatory requirements for “well-capitalized” status, and Citigroup has at least $100 billion more capital than it needs to reach that threshold, Crittenden said.
Vanishing Value
“Today’s government actions seem to ensure its survival,” Sandler O’Neill & Partners LP analyst Jeff Harte wrote today in a report.
Former Chairman Sanford “Sandy” Weill, 75, built Citigroup through more than 100 acquisitions during his 17 years at the helm. The company pioneered the “financial supermarket” concept, offering services including branch banking, trading, investment-banking, credit cards, mortgage lending and transaction processing.
Citigroup’s market value, which at $274 billion at the end of 2006 was bigger than any of its U.S. rivals, has since slumped to $31 billion, ranking No. 6 behind JPMorgan Chase & Co., Wells Fargo & Co., Bank of America Corp., U.S. Bancorp and Bank of New York Mellon Corp.
Addressing employees last week, Pandit, 51, said he wanted to stick with the bank’s business strategy and avoid selling “core businesses” including the Smith Barney brokerage. Crittenden, 55, said in the interview that the stabilization deal with the government will allow investors to “look through to the earnings potential of the franchise.”
‘Stronger Hands’
Investors and Citigroup’s rivals may think differently.
“We should be thinking about breaking this company up and redistributing the assets into stronger hands,” Christopher Whalen of Institutional Risk Analytics, a Torrance, California- based research firm, said in a Bloomberg Radio interview.
Under the asset guarantees, Citigroup will cover the first $29 billion of pretax losses on the $306 billion asset pool, in addition to any reserves it already has set aside. After that, the government covers 90 percent of the losses, with Citigroup covering the rest. In addition to the mortgages, the guarantees cover U.S.-originated “structured investment vehicles,” which already this year have stuck the bank with $3.3 billion of writedowns.
The warrants accompanying the preferred shares give the government the right to buy 254 million Citigroup shares at $10.61 each, allowing taxpayers to profit if the stock rallies following the government’s investment. When combined with the warrants that came with last month’s injection under the Troubled Asset Relief Program, the Treasury would have an 8 percent stake in Citigroup.
Pandit’s Job
The deal is designed to “strengthen the financial system and protect U.S. taxpayers,” according to the statement from the three agencies.
In a departure from terms of the AIG, Fannie Mae and Freddie Mac bailouts, no management changes were required and Pandit gets to keep his job, government officials said. The government will have a say over executive compensation at Citigroup.
The bank still may end up “controlled by the government,” said Whalen, of Institutional Risk Analytics. In an interview with Bloomberg television, Crittenden said he was “quite confident that we will stay out of the government’s hand.”
Prince, Alwaleed
Pandit, a former Morgan Stanley banker, was picked to succeed Charles O. “Chuck” Prince five months after joining the bank as head of hedge-fund and private-equity investments. In May of this year, he announced a plan to rid the bank of more than $400 billion of its worst “legacy assets” -- many of them accumulated through an expansion in subprime mortgages and asset- backed lending during Prince’s four-year tenure.
As the stock tumbled last week, Pandit announced a plan to eliminate 52,000 jobs and cut costs by about $2 billion per quarter. He and three top deputies bought 1.3 million shares in a show of confidence, and Prince Alwaleed bin Talal, one of the bank’s biggest investors, said he would boost his stake to about 5 percent from 4 percent.
The stock kept plunging, and the bank’s board called an emergency meeting on Nov. 21 to discuss its options. The frenzied weekend of discussions with the Fed and Treasury were reminiscent of those that took place when Bear Stearns Cos. collapsed in March and Lehman Brothers Holdings Inc. descended into bankruptcy in September.
Loan Losses
“The lack of confidence in Citi’s stock price required the government to help stem the tide in order to avoid systemic risk over the weekend, which was not enough of a window for any serious bidders for a major takeover or segment sale,” CreditSights Inc. analyst David Hendler wrote today in a report. “These actions should settle market jitters surrounding the company for now.”
Alwaleed, in an interview today on CNBC, laid the blame for Citigroup’s troubles at the feet of Prince, and said he has “full confidence” in Pandit.
“You can never judge a CEO with this short tenure,” Alwaleed said. “Vikram should be given more time.”
Citigroup remains vulnerable to losses on loans and securities outside the U.S., said Peter Kovalski, a portfolio manager at Alpine Woods Capital Investors LLC in Purchase, New York, which oversees $8 billion and holds Citigroup shares. The bank also is keeping its credit-card and consumer-finance loans, where delinquencies also have surged.
The government plan “gives them a little bit of breathing room, but longer term, things may deteriorate and losses increase,” said Kovalski. “The Achilles heel with Citi is their exposure to emerging markets and what’s going to happen when emerging markets turn down, as they’re doing now.”
To contact the reporters on this story: Bradley Keoun in New York at bkeoun@bloomberg.net;
Last Updated: November 24, 2008 14:49 EST
Citigroup Gets U.S. Rescue From Losses, Cash Infusion (Update2)
By Bradley Keoun
Nov. 24 (Bloomberg) -- Citigroup Inc. received a U.S. government rescue package that shields the bank from losses on toxic assets and injects $20 billion of capital, bolstering the stock after its 60 percent plunge last week.
The second-biggest U.S. bank by assets surged as much as 72 percent in New York trading after the Treasury, Federal Reserve and Federal Deposit Insurance Corp. announced the aid plan yesterday. In return for the cash and guarantees, the government gets $27 billion of preferred shares paying an 8 percent dividend and warrants equivalent to a 4.5 percent stake in the company.
The regulators stepped in to protect Citigroup from losses on $306 billion of troubled U.S. home loans, commercial mortgages, subprime bonds and low-grade corporate loans when the firm’s tumbling shares sparked concern that depositors might pull their money, destabilizing a company that operates in more than 100 countries. The $20 billion of new cash adds to a $25 billion infusion the bank, led by Chief Executive Officer Vikram Pandit, collected last month under a Congressional bailout program.
“It really was a must-do thing,” said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $85 billion. “If they’d let Citigroup go, that would’ve been disastrous.”
Citigroup’s stock dropped below $5 last week for the first time since 1994, vexing government officials who in the past three months have pumped $250 billion into U.S. banks, expanded the Fed’s last-resort lending programs by more than $1 trillion and bailed out insurer American International Group Inc. and mortgage finance companies Fannie Mae and Freddie Mac.
Dividend Cut
The shares, which closed last week at a 15-year-low of $3.77, today surged 52 percent to $5.73 as of 2:45 p.m. in New York Stock Exchange composite trading. The stock remains 89 percent off the record $55.70 reached in December 2006.
The cost of the new preferred shares will reduce earnings left over for common shareholders, Morgan Stanley analysts Betsy Graseck and Cheryl Pate wrote today in a report. Under the terms of the deal with the government, Citigroup also has to slash its quarterly shareholder dividend to 1 cent from 16 cents.
Over the longer term, Citigroup’s stock price will appreciate because of “the reduction in ‘tail risk,’” or the chance that losses might be become so heavy the bank can’t sustain them, they said.
“For the foreseeable future, Citi has oxygen,” Royal Bank of Scotland Group Plc analyst Tom Jenkins wrote today in a report.
Losing Streak
Pandit, who has been unable to snap a four-quarter streak of net losses totaling $20 billion since he took the lead at the company in December 2007, said the agreement addresses “market confidence and the recent decline in Citi’s stock.”
“What we really needed to do was completely put behind us the issue of whether Citi would be able to cover the losses that it has out of the capital base that it has,” Chief Financial Officer Gary Crittenden said in an interview. “Under virtually any circumstance that is reasonable, Citi has the ability now.”
The asset guarantees and capital infusion will boost Citigroup’s Tier 1 ratio -- a gauge of the bank’s ability to withstand loan losses -- to 14.8 percent, from 8.19 percent at the end of September. A bank needs a 6 percent Tier 1 ratio to meet the regulatory requirements for “well-capitalized” status, and Citigroup has at least $100 billion more capital than it needs to reach that threshold, Crittenden said.
Vanishing Value
“Today’s government actions seem to ensure its survival,” Sandler O’Neill & Partners LP analyst Jeff Harte wrote today in a report.
Former Chairman Sanford “Sandy” Weill, 75, built Citigroup through more than 100 acquisitions during his 17 years at the helm. The company pioneered the “financial supermarket” concept, offering services including branch banking, trading, investment-banking, credit cards, mortgage lending and transaction processing.
Citigroup’s market value, which at $274 billion at the end of 2006 was bigger than any of its U.S. rivals, has since slumped to $31 billion, ranking No. 6 behind JPMorgan Chase & Co., Wells Fargo & Co., Bank of America Corp., U.S. Bancorp and Bank of New York Mellon Corp.
Addressing employees last week, Pandit, 51, said he wanted to stick with the bank’s business strategy and avoid selling “core businesses” including the Smith Barney brokerage. Crittenden, 55, said in the interview that the stabilization deal with the government will allow investors to “look through to the earnings potential of the franchise.”
‘Stronger Hands’
Investors and Citigroup’s rivals may think differently.
“We should be thinking about breaking this company up and redistributing the assets into stronger hands,” Christopher Whalen of Institutional Risk Analytics, a Torrance, California- based research firm, said in a Bloomberg Radio interview.
Under the asset guarantees, Citigroup will cover the first $29 billion of pretax losses on the $306 billion asset pool, in addition to any reserves it already has set aside. After that, the government covers 90 percent of the losses, with Citigroup covering the rest. In addition to the mortgages, the guarantees cover U.S.-originated “structured investment vehicles,” which already this year have stuck the bank with $3.3 billion of writedowns.
The warrants accompanying the preferred shares give the government the right to buy 254 million Citigroup shares at $10.61 each, allowing taxpayers to profit if the stock rallies following the government’s investment. When combined with the warrants that came with last month’s injection under the Troubled Asset Relief Program, the Treasury would have an 8 percent stake in Citigroup.
Pandit’s Job
The deal is designed to “strengthen the financial system and protect U.S. taxpayers,” according to the statement from the three agencies.
In a departure from terms of the AIG, Fannie Mae and Freddie Mac bailouts, no management changes were required and Pandit gets to keep his job, government officials said. The government will have a say over executive compensation at Citigroup.
The bank still may end up “controlled by the government,” said Whalen, of Institutional Risk Analytics. In an interview with Bloomberg television, Crittenden said he was “quite confident that we will stay out of the government’s hand.”
Prince, Alwaleed
Pandit, a former Morgan Stanley banker, was picked to succeed Charles O. “Chuck” Prince five months after joining the bank as head of hedge-fund and private-equity investments. In May of this year, he announced a plan to rid the bank of more than $400 billion of its worst “legacy assets” -- many of them accumulated through an expansion in subprime mortgages and asset- backed lending during Prince’s four-year tenure.
As the stock tumbled last week, Pandit announced a plan to eliminate 52,000 jobs and cut costs by about $2 billion per quarter. He and three top deputies bought 1.3 million shares in a show of confidence, and Prince Alwaleed bin Talal, one of the bank’s biggest investors, said he would boost his stake to about 5 percent from 4 percent.
The stock kept plunging, and the bank’s board called an emergency meeting on Nov. 21 to discuss its options. The frenzied weekend of discussions with the Fed and Treasury were reminiscent of those that took place when Bear Stearns Cos. collapsed in March and Lehman Brothers Holdings Inc. descended into bankruptcy in September.
Loan Losses
“The lack of confidence in Citi’s stock price required the government to help stem the tide in order to avoid systemic risk over the weekend, which was not enough of a window for any serious bidders for a major takeover or segment sale,” CreditSights Inc. analyst David Hendler wrote today in a report. “These actions should settle market jitters surrounding the company for now.”
Alwaleed, in an interview today on CNBC, laid the blame for Citigroup’s troubles at the feet of Prince, and said he has “full confidence” in Pandit.
“You can never judge a CEO with this short tenure,” Alwaleed said. “Vikram should be given more time.”
Citigroup remains vulnerable to losses on loans and securities outside the U.S., said Peter Kovalski, a portfolio manager at Alpine Woods Capital Investors LLC in Purchase, New York, which oversees $8 billion and holds Citigroup shares. The bank also is keeping its credit-card and consumer-finance loans, where delinquencies also have surged.
The government plan “gives them a little bit of breathing room, but longer term, things may deteriorate and losses increase,” said Kovalski. “The Achilles heel with Citi is their exposure to emerging markets and what’s going to happen when emerging markets turn down, as they’re doing now.”
To contact the reporters on this story: Bradley Keoun in New York at bkeoun@bloomberg.net;
Last Updated: November 24, 2008 14:49 EST
Saturday, November 22, 2008
CMKX --- CMKM Diamonds Inc --- ***Citigroup Demise Part II***
Bloomberg.com
Citigroup May End Up With Government Rescue After Stock Skids
TIME.com
Will Citigroup Survive? Four Possible Scenarios...
CNBC.com
Citigroup Talks, But Nothing 'Walks' To Stabilize...
Citigroup Update: Reports Emerge Of Possible Plan
Topics:Earnings | Nasdaq | NYSE | Stock Picks | Stock Market
Companies:Goldman Sachs Group Inc | Morgan Stanley | Citigroup IncBy Charlie Gasparino, On-Air Editor | 23 Nov 2008 | 01:03 PM ET
Citi officials are reportedly working on a plan that could include a capital injection from the Federal government—among other possible ideas. The details have yet to be hammered out and it's not clear when such a plan would be announced.
Officials from Citigroup [C 3.77 -0.94 (-19.96%) ] and the government had been discussing ways to stabilize the company's stock price over the weekend.
As of Saturday afternoon, the general consensus between officials from Citi and government officials from the US Treasury department and US Federal Reserve is that the government will not takeover Citigroup in the way it took control of AIG—by lending the firm massive amounts of money and in return assuming a huge equity position.
Government officials fear taking over Citigroup would create a precedent: Unlike AIG, Citigroup's balance sheet is relatively healthy, with relatively strong levels of capital particularly compared to most of its competitors.
Still, officials from the Treasury and Citigroup are unsure what it would take to restore confidence in the company, including a possible smaller capital injection or some sort of statement that Citigroup is financially sound.
For that reason, Citigroup officials are continuing to explore possible merger possibilities and a spin off of some of Citigroup's businesses, even as CEP Vikram Pandit publicly stated the sale of the firm's massive and coveted broker business, Smith Barney is off the table, these people say.
Both officials at Citigroup and in the government concede the situation facing Citigoup is daunting. Because of Citigroup's size and scope—it operates in just about every country and competes in just about every financial business, the company's survival is a national concern.
Citigroup has spent the past week telling investors that its capital position is strong, but investors have lost confidence in the current management led by CEO Vikram Pandit who has been in the job less than a year, and the firm's board, which appeared to ignore widespread calls by analysts to integrate the firms operations and slash its massive workforce until recently.
Meanwhile, various merger possibilities seem slim. A deal with investment banks Morgan Stanley [MS 10.05 0.85 (+9.24%) ] or Goldman Sachs [GS 53.31 1.31 (+2.52%) ] would create massive overlap and would lead to huge layoffs. There aren't many banks with a strong deposit base that Citigroup can buy with its depressed stock price.
Pandit, for his part, has cut the workforce to 350,000 from 375,000 and just announced another 50,000-job cut by early 2009. But for investors, those moves were too little too late. Nearly a year ago, Citigroup's share traded at around $50. On Friday they traded at $3.77 and failed to rebound even as the Dow Jones Industrial Average of large company stocks spiked nearly 500 points on the news that President-elect Barack Obama will name NY Fed President Tim Geithner as his new Treasury Secretary.
Citigroup's Ills May Signal Market Isn't Near Bottom
Because Citigroup is a bank it has access the the Federal Reserves discount window, and because of its size, there is virtually no possibility of the bank failing and filing for bankruptcy as investment bank Lehman Brothers did. "Citigroup is too big to fail; the government wont allow that because the firm is involves in so many business both institutional and consumer around the world," said one bond trader with detailed knowledge of Citigroup's operations.
Investor fear remains deep despite one-day rally
But the lack of confidence coupled by the falling stock price could pose other problems, such as a run on bank deposits, where worried depositors yank their money from their Citigroup accounts, or investors pulling their funds from their Smith Barney brokerage accounts. A Citigroup spokesman declined to say if the company is experiencing either of those scenarios.
For that reason, Citigroup officials continued to work over the weekend to possibly unveil some sort of plan of action by Monday morning. "Everyone knows saving Citigroup is important to saving the economy, but no one knows what to do," said one person close to the firm.
Copyright 2008 Reuters.
Citigroup May End Up With Government Rescue After Stock Skids
TIME.com
Will Citigroup Survive? Four Possible Scenarios...
CNBC.com
Citigroup Talks, But Nothing 'Walks' To Stabilize...
Citigroup Update: Reports Emerge Of Possible Plan
Topics:Earnings | Nasdaq | NYSE | Stock Picks | Stock Market
Companies:Goldman Sachs Group Inc | Morgan Stanley | Citigroup IncBy Charlie Gasparino, On-Air Editor | 23 Nov 2008 | 01:03 PM ET
Citi officials are reportedly working on a plan that could include a capital injection from the Federal government—among other possible ideas. The details have yet to be hammered out and it's not clear when such a plan would be announced.
Officials from Citigroup [C 3.77 -0.94 (-19.96%) ] and the government had been discussing ways to stabilize the company's stock price over the weekend.
As of Saturday afternoon, the general consensus between officials from Citi and government officials from the US Treasury department and US Federal Reserve is that the government will not takeover Citigroup in the way it took control of AIG—by lending the firm massive amounts of money and in return assuming a huge equity position.
Government officials fear taking over Citigroup would create a precedent: Unlike AIG, Citigroup's balance sheet is relatively healthy, with relatively strong levels of capital particularly compared to most of its competitors.
Still, officials from the Treasury and Citigroup are unsure what it would take to restore confidence in the company, including a possible smaller capital injection or some sort of statement that Citigroup is financially sound.
For that reason, Citigroup officials are continuing to explore possible merger possibilities and a spin off of some of Citigroup's businesses, even as CEP Vikram Pandit publicly stated the sale of the firm's massive and coveted broker business, Smith Barney is off the table, these people say.
Both officials at Citigroup and in the government concede the situation facing Citigoup is daunting. Because of Citigroup's size and scope—it operates in just about every country and competes in just about every financial business, the company's survival is a national concern.
Citigroup has spent the past week telling investors that its capital position is strong, but investors have lost confidence in the current management led by CEO Vikram Pandit who has been in the job less than a year, and the firm's board, which appeared to ignore widespread calls by analysts to integrate the firms operations and slash its massive workforce until recently.
Meanwhile, various merger possibilities seem slim. A deal with investment banks Morgan Stanley [MS 10.05 0.85 (+9.24%) ] or Goldman Sachs [GS 53.31 1.31 (+2.52%) ] would create massive overlap and would lead to huge layoffs. There aren't many banks with a strong deposit base that Citigroup can buy with its depressed stock price.
Pandit, for his part, has cut the workforce to 350,000 from 375,000 and just announced another 50,000-job cut by early 2009. But for investors, those moves were too little too late. Nearly a year ago, Citigroup's share traded at around $50. On Friday they traded at $3.77 and failed to rebound even as the Dow Jones Industrial Average of large company stocks spiked nearly 500 points on the news that President-elect Barack Obama will name NY Fed President Tim Geithner as his new Treasury Secretary.
Citigroup's Ills May Signal Market Isn't Near Bottom
Because Citigroup is a bank it has access the the Federal Reserves discount window, and because of its size, there is virtually no possibility of the bank failing and filing for bankruptcy as investment bank Lehman Brothers did. "Citigroup is too big to fail; the government wont allow that because the firm is involves in so many business both institutional and consumer around the world," said one bond trader with detailed knowledge of Citigroup's operations.
Investor fear remains deep despite one-day rally
But the lack of confidence coupled by the falling stock price could pose other problems, such as a run on bank deposits, where worried depositors yank their money from their Citigroup accounts, or investors pulling their funds from their Smith Barney brokerage accounts. A Citigroup spokesman declined to say if the company is experiencing either of those scenarios.
For that reason, Citigroup officials continued to work over the weekend to possibly unveil some sort of plan of action by Monday morning. "Everyone knows saving Citigroup is important to saving the economy, but no one knows what to do," said one person close to the firm.
Copyright 2008 Reuters.
Thursday, November 20, 2008
CMKX --- CMKM Diamonds Inc --- ***Citigroup Demise...??***
Citigroup Executives Weigh Selling Off All or Part of Company, WSJ Reports
Citigroup Considers Sale of Company, Wall Street Journal Says
By Jesse Westbrook
Nov. 20 (Bloomberg) -- Citigroup Inc., which fell 26 percent in New York trading today, is considering selling off pieces of the bank or the whole company, the Wall Street Journal reported online, citing people familiar with the matter.
Talks are preliminary and don’t suggest that New York-based Citigroup is backing away from its insistence that it has sufficient capital and funding, the Journal said.
Buffeted by four straight quarterly losses, Citigroup has raised about $75 billion since December by selling assets and equity stakes, including a $25 billion injection from the U.S. Treasury. The government will do whatever it takes to stabilize Citigroup, including pouring more money into the company, because of the threat its failure would pose to the global economy, said Peter Wallison, a fellow at the Washington-based American Enterprise Institute.
“There is no question that Citigroup will not be allowed to fail,” said Wallison, who was Treasury Department general counsel under former President Ronald Reagan. “I would not think it is a good idea to restore the ban on short selling,” he said.
Citigroup declined $1.69 to a 15-year low of $4.71 on the New York Stock Exchange at 4:15 p.m. It has fallen 84 percent this year.
Citigroup has lost about $20 billion in the past four quarters as bad loans increased and demand for banking services declined. Chief Executive Officer Vikram Pandit said this week the company will cut 52,000 jobs in the next year to lower costs.
Citigroup is seeking to revive a prohibition on short- selling financial stocks, according to a person familiar with the matter. The bank has discussed with the Securities and Exchange Commission and lawmakers its proposal to reinstitute the ban on bets that stock prices will fall, said the person, who declined to be identified because the discussions weren’t public.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Last Updated: November 20, 2008 20:46 EST
Citigroup Considers Sale of Company, Wall Street Journal Says
By Jesse Westbrook
Nov. 20 (Bloomberg) -- Citigroup Inc., which fell 26 percent in New York trading today, is considering selling off pieces of the bank or the whole company, the Wall Street Journal reported online, citing people familiar with the matter.
Talks are preliminary and don’t suggest that New York-based Citigroup is backing away from its insistence that it has sufficient capital and funding, the Journal said.
Buffeted by four straight quarterly losses, Citigroup has raised about $75 billion since December by selling assets and equity stakes, including a $25 billion injection from the U.S. Treasury. The government will do whatever it takes to stabilize Citigroup, including pouring more money into the company, because of the threat its failure would pose to the global economy, said Peter Wallison, a fellow at the Washington-based American Enterprise Institute.
“There is no question that Citigroup will not be allowed to fail,” said Wallison, who was Treasury Department general counsel under former President Ronald Reagan. “I would not think it is a good idea to restore the ban on short selling,” he said.
Citigroup declined $1.69 to a 15-year low of $4.71 on the New York Stock Exchange at 4:15 p.m. It has fallen 84 percent this year.
Citigroup has lost about $20 billion in the past four quarters as bad loans increased and demand for banking services declined. Chief Executive Officer Vikram Pandit said this week the company will cut 52,000 jobs in the next year to lower costs.
Citigroup is seeking to revive a prohibition on short- selling financial stocks, according to a person familiar with the matter. The bank has discussed with the Securities and Exchange Commission and lawmakers its proposal to reinstitute the ban on bets that stock prices will fall, said the person, who declined to be identified because the discussions weren’t public.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Last Updated: November 20, 2008 20:46 EST
Tuesday, November 18, 2008
CMKX -- CMKM Diamonds Inc. -- Shareholders' Corner *Tyler Update*
Shareholders' Corner
11-18-08
A quick note to dispel recent rumors. The phrase of the week is "patently false".
First of all, concerning the recent judgment in the Rutherford lawsuit, our attorney in Las Vegas contacted the plaintiff's attorney's office and spoke with his assistant. Here is our attorney's response on the issue:
"Just called his assistant and confirmed it was not against CMKM Diamonds (only against Casavant and CMKXtreme). They said they have not received the judgment back from the court yet, which is why it has not showed up on the system to date. The online docket will often say 'All Parties' under docket entries, but that does not mean the judgment applies to all parties, just that all parties may be affected. The only Motion for Default Judgment on file (filed in May) does not include CMKM Diamonds. The electronic documents on the court's system do not yet include the recent prove up documents."
In the unlikely event the company is incorrectly named in the final default judgment, a motion to set aside the default will be promptly filed. The company’s attorney has appeared at all required settings and is prepared to defend the company against the claims made by Jay Rutherford.
Now on to the "patently false" part of the update:
Kevin West is the Chairman of the Board of CMKM Diamonds. Information posted on the message boards that he has "moved on" are patently false. Although it is true that Kevin is working primarily out of his own office, he is actively involved in all Company decisions and is in close contact with me on a daily basis. Any rumors to the contrary are patently false.
I was NOT chosen by Bill Frizzell to succeed Kevin West as CEO of CMKM Diamonds, Inc. In fact, Frizzell was not even notified of the decision until after the Board of Directors and former CEO Kevin West had offered me the position. Frizzell is the Corporate Counsel, and as such, has no involvement in the hiring or firing of Company employees.
My work with CMKM is NOT for the intention of promoting my book. If anything, I took the job against the advice of many of my closest associates and friends, who felt that it would be detrimental to my efforts to remain an objective voice for reform of our stock markets. I did it because I believed (and still believe) that I can do some good for the Company and its shareholders. Those who bash the Company and claim that we are involved out of greed or our own personal gain are entirely misguided.
My recent involvement with a project that I hope will bring widespread exposure not just to the plight of CMKM Diamonds but to the issue of stock market fraud in general is not in any way related to The Owners Group Inc. (TOGI) or to Fuego Entertainment. Anything posted implying that is patently false. It is an independent project that I was approached about because of my five years as an (entirely unpaid) advocate for stock market reform. After reading my book on the topic, the producers decided to include the CMKX story in the documentary, along with the story of my efforts on behalf of reforming our financial markets in general. Frankly, it is becoming increasingly difficult for me to make the case to the film's producers that the CMKX shareholders are victims when in fact many shareholders have attacked even those who are trying to help them.
In fact, TOGI is not in any way related or involved with CMKM Diamonds. It is a fact that Bill Frizzell was originally approached by John Martin in an attempt to help CMKX shareholders before the SEC delisting hearing, and it is a fact that both are themselves CMKX shareholders, but to imply that somehow TOGI is involved with CMKM is ludicrous and patently false. They provide an outlet to air our monthly CEO Chat radio shows, completely free of charge, but that is the extent of their involvement. Period.
There has been much discussion about moneys paid to those currently working for the Company. This issue has been addressed several times, but I'll cover it once more. I have not received a single penny to date from CMKM Diamonds, Inc. The salary I was offered was $10,000 per month, but I have voluntarily deferred that salary for the time being. In fact, I'll go a step further. Because much of the groundwork has already been laid through the considerable efforts of Kevin West and Bill Frizzell, the position of CEO is not at this time, in my opinion, a full time position. Therefore, any compensation I receive will be pro-rated based on the amount of time required to perfo
any future employment agreements with others who may or may not become involved with the Company. Board of Directors and Advisory Committee members receive absolutely no payment or compensation of any kind. They have chosen to assist the Company on an entirely voluntary basis. As an active employee and Chairman of the Board, Kevin West is entitled to a partial salary.
In any event, no shareholders' money originally invested in CMKM Diamonds, Inc. is being used to pay any salaries, bills, or other costs related to running the Company. The over $250 million dollars originally invested in CMKM Diamonds, Inc. was stolen by former Company officers and insiders. On more than one occasion, on a single day, Urban Casavant gave himself and family members millions of dollars of shareholders' money. John Edwards, David DeSormeau, and many others enriched themselves to obscene degrees using the Company and shareholders' money as well. To imply that there is any comparison between the formerly involved con artists, who defrauded CMKM and its shareholders, and current individuals who are attempting to recoup money stolen from the Company is ridiculous and patently false.
My efforts for the Company will continue, as will the efforts of Kevin West, Bill Frizzell, our Board of Directors, Advisory Committee, and anyone else who has assisted the Company. The Company is moving forward. Results take time, especially when it comes to legal efforts. I am as frustrated as anyone about that simple fact, but nonetheless, it is a fact. Those who not support us are entitled to their opinions, but I repeat: this Company is moving forward. Any outlandish assumptions or misinformation that emanates from outside the Company should be assumed to be patently false unless directly confirmed by the Company itself.
The next CEO Chat will be Friday, December 5, 2008, from 9-10 AM CST at www.toginet.com All archived shows will be accessible via the CMKM Radio Player. Please send your inquiries and comments to questions@cmkmdiamondsinc.com
Mark Faulk, CEO
CMKM Diamonds, Inc.
11-18-08
A quick note to dispel recent rumors. The phrase of the week is "patently false".
First of all, concerning the recent judgment in the Rutherford lawsuit, our attorney in Las Vegas contacted the plaintiff's attorney's office and spoke with his assistant. Here is our attorney's response on the issue:
"Just called his assistant and confirmed it was not against CMKM Diamonds (only against Casavant and CMKXtreme). They said they have not received the judgment back from the court yet, which is why it has not showed up on the system to date. The online docket will often say 'All Parties' under docket entries, but that does not mean the judgment applies to all parties, just that all parties may be affected. The only Motion for Default Judgment on file (filed in May) does not include CMKM Diamonds. The electronic documents on the court's system do not yet include the recent prove up documents."
In the unlikely event the company is incorrectly named in the final default judgment, a motion to set aside the default will be promptly filed. The company’s attorney has appeared at all required settings and is prepared to defend the company against the claims made by Jay Rutherford.
Now on to the "patently false" part of the update:
Kevin West is the Chairman of the Board of CMKM Diamonds. Information posted on the message boards that he has "moved on" are patently false. Although it is true that Kevin is working primarily out of his own office, he is actively involved in all Company decisions and is in close contact with me on a daily basis. Any rumors to the contrary are patently false.
I was NOT chosen by Bill Frizzell to succeed Kevin West as CEO of CMKM Diamonds, Inc. In fact, Frizzell was not even notified of the decision until after the Board of Directors and former CEO Kevin West had offered me the position. Frizzell is the Corporate Counsel, and as such, has no involvement in the hiring or firing of Company employees.
My work with CMKM is NOT for the intention of promoting my book. If anything, I took the job against the advice of many of my closest associates and friends, who felt that it would be detrimental to my efforts to remain an objective voice for reform of our stock markets. I did it because I believed (and still believe) that I can do some good for the Company and its shareholders. Those who bash the Company and claim that we are involved out of greed or our own personal gain are entirely misguided.
My recent involvement with a project that I hope will bring widespread exposure not just to the plight of CMKM Diamonds but to the issue of stock market fraud in general is not in any way related to The Owners Group Inc. (TOGI) or to Fuego Entertainment. Anything posted implying that is patently false. It is an independent project that I was approached about because of my five years as an (entirely unpaid) advocate for stock market reform. After reading my book on the topic, the producers decided to include the CMKX story in the documentary, along with the story of my efforts on behalf of reforming our financial markets in general. Frankly, it is becoming increasingly difficult for me to make the case to the film's producers that the CMKX shareholders are victims when in fact many shareholders have attacked even those who are trying to help them.
In fact, TOGI is not in any way related or involved with CMKM Diamonds. It is a fact that Bill Frizzell was originally approached by John Martin in an attempt to help CMKX shareholders before the SEC delisting hearing, and it is a fact that both are themselves CMKX shareholders, but to imply that somehow TOGI is involved with CMKM is ludicrous and patently false. They provide an outlet to air our monthly CEO Chat radio shows, completely free of charge, but that is the extent of their involvement. Period.
There has been much discussion about moneys paid to those currently working for the Company. This issue has been addressed several times, but I'll cover it once more. I have not received a single penny to date from CMKM Diamonds, Inc. The salary I was offered was $10,000 per month, but I have voluntarily deferred that salary for the time being. In fact, I'll go a step further. Because much of the groundwork has already been laid through the considerable efforts of Kevin West and Bill Frizzell, the position of CEO is not at this time, in my opinion, a full time position. Therefore, any compensation I receive will be pro-rated based on the amount of time required to perfo
any future employment agreements with others who may or may not become involved with the Company. Board of Directors and Advisory Committee members receive absolutely no payment or compensation of any kind. They have chosen to assist the Company on an entirely voluntary basis. As an active employee and Chairman of the Board, Kevin West is entitled to a partial salary.
In any event, no shareholders' money originally invested in CMKM Diamonds, Inc. is being used to pay any salaries, bills, or other costs related to running the Company. The over $250 million dollars originally invested in CMKM Diamonds, Inc. was stolen by former Company officers and insiders. On more than one occasion, on a single day, Urban Casavant gave himself and family members millions of dollars of shareholders' money. John Edwards, David DeSormeau, and many others enriched themselves to obscene degrees using the Company and shareholders' money as well. To imply that there is any comparison between the formerly involved con artists, who defrauded CMKM and its shareholders, and current individuals who are attempting to recoup money stolen from the Company is ridiculous and patently false.
My efforts for the Company will continue, as will the efforts of Kevin West, Bill Frizzell, our Board of Directors, Advisory Committee, and anyone else who has assisted the Company. The Company is moving forward. Results take time, especially when it comes to legal efforts. I am as frustrated as anyone about that simple fact, but nonetheless, it is a fact. Those who not support us are entitled to their opinions, but I repeat: this Company is moving forward. Any outlandish assumptions or misinformation that emanates from outside the Company should be assumed to be patently false unless directly confirmed by the Company itself.
The next CEO Chat will be Friday, December 5, 2008, from 9-10 AM CST at www.toginet.com All archived shows will be accessible via the CMKM Radio Player. Please send your inquiries and comments to questions@cmkmdiamondsinc.com
Mark Faulk, CEO
CMKM Diamonds, Inc.
Monday, November 17, 2008
CMKX - Ends With CITI...??
Citigroup's Pandit Will Reduce Headcount by 50,000, Lower Expenses by 20%
Citigroup Cutting 53,000 More Jobs
Citi to Cut 53,000 Jobs, Boosting Total to 20%
Citigroup to shed another 53,000 jobs
Citigroup's Stock Plunges Despite Major Job Cuts
Will Citigroup (C) Be Sold To JP Morgan (JPM) Or Taken Over Like AIG (AIG)?
If the press is right, Citigroup (C) is about to hold a big pep rally with its CEO Vikram Pandit raising the cheer followed by an announcement that it will fire another 35,000 people. Morale will never be better.
But, the markets are wise, and they are saying that there is a very reasonable chance Citi may not survive as an independent entity. It is no secret that the bank's shares, which are trading below $10, are off much more over the last year than those of the other large US money center banks
Citi is at a tipping point like a cow in a field at midnight. If its stock continues to drop sharply, the market and the bank's customers may begin to lose faith and withdraw assets or cease doing business with the firm. If Citi announces that its financial fortunes will get worse between now and its next earnings report, it may say that the damage within some of its division cannot be contained.
That leaves the question of whether Citi becomes the next Wachovia or the next AIG (AIG). If the Fed and Treasury become concerned enough about the bank and have to intercede with more capital, the government may pressure Citi's board to sell the company to the highest bidder within its own industry. That may be the well-run JP Morgan (JPM) The FDIC might have to guarantee some of Citi's assets to accommodate a transaction, but there is recent precedent for the government to bend in that direction.
If the problems at Citi deteriorate quickly and its falls, as it certainly does, into the "too big to fail" bucket, the government may simply have to pour cash into the bank in exchange for a majority ownership position. That would involve bringing in new management to sell of enough assets to get the bank stable. The government would hope against hope that those sales would bring in enough money for the taxpayer to get some return.
Citi's share price is a signal and it may become brighter and more troubling as the year moves toward a close.
Douglas A. McIntyre
Citigroup Cutting 53,000 More Jobs
Citi to Cut 53,000 Jobs, Boosting Total to 20%
Citigroup to shed another 53,000 jobs
Citigroup's Stock Plunges Despite Major Job Cuts
Will Citigroup (C) Be Sold To JP Morgan (JPM) Or Taken Over Like AIG (AIG)?
If the press is right, Citigroup (C) is about to hold a big pep rally with its CEO Vikram Pandit raising the cheer followed by an announcement that it will fire another 35,000 people. Morale will never be better.
But, the markets are wise, and they are saying that there is a very reasonable chance Citi may not survive as an independent entity. It is no secret that the bank's shares, which are trading below $10, are off much more over the last year than those of the other large US money center banks
Citi is at a tipping point like a cow in a field at midnight. If its stock continues to drop sharply, the market and the bank's customers may begin to lose faith and withdraw assets or cease doing business with the firm. If Citi announces that its financial fortunes will get worse between now and its next earnings report, it may say that the damage within some of its division cannot be contained.
That leaves the question of whether Citi becomes the next Wachovia or the next AIG (AIG). If the Fed and Treasury become concerned enough about the bank and have to intercede with more capital, the government may pressure Citi's board to sell the company to the highest bidder within its own industry. That may be the well-run JP Morgan (JPM) The FDIC might have to guarantee some of Citi's assets to accommodate a transaction, but there is recent precedent for the government to bend in that direction.
If the problems at Citi deteriorate quickly and its falls, as it certainly does, into the "too big to fail" bucket, the government may simply have to pour cash into the bank in exchange for a majority ownership position. That would involve bringing in new management to sell of enough assets to get the bank stable. The government would hope against hope that those sales would bring in enough money for the taxpayer to get some return.
Citi's share price is a signal and it may become brighter and more troubling as the year moves toward a close.
Douglas A. McIntyre
Friday, November 14, 2008
CMKX - You Can't Be Serious...??
WHAT...??
"The More Positive The Sentiment Towards A Certain Citi, The Better.
Knight Has Fallen Upon Us And A Master Has Left His Legacy!
A Giant Will Fall And A New Giant Will Reign!
Sally Knew When To Get Out!
The Auto Makers Are Second In Line With A "Bailout" Making The First In Line Of Priority The Utmost To The "Beneficiary" Of The CMKM Shareholder!!!
Funds Will Be Released Within Days!!"
- Guess WHO...??
"The More Positive The Sentiment Towards A Certain Citi, The Better.
Knight Has Fallen Upon Us And A Master Has Left His Legacy!
A Giant Will Fall And A New Giant Will Reign!
Sally Knew When To Get Out!
The Auto Makers Are Second In Line With A "Bailout" Making The First In Line Of Priority The Utmost To The "Beneficiary" Of The CMKM Shareholder!!!
Funds Will Be Released Within Days!!"
- Guess WHO...??
Saturday, November 1, 2008
CMKX - acca's Web Page Has Been UPDATED...!!
accadacca's CMKM Diamonds Web Page Has Been UPDATED...!!
www.cmkm.info
NEW AC/DC Music...!!
"Information Will Be Available On This Website November 15 Or Earlier."
acca Says By November 6th...
Previously, This Website Said "Info By May"...??
Editor's Note - Now I Feel MUCH Better...!!
www.cmkm.info
NEW AC/DC Music...!!
"Information Will Be Available On This Website November 15 Or Earlier."
acca Says By November 6th...
Previously, This Website Said "Info By May"...??
Editor's Note - Now I Feel MUCH Better...!!
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